Oil prices rose by more than five per cent yesterday.
Gatekeepers News reports that oil prices rose by more than five per cent yesterday, as a weaker dollar and strong global equities markets boosted crude futures after seven days of declines.
Brent crude climbed $3.64, or 5.6 per cent, to $68.82 a barrel after touching its lowest since May, this year at $64.60 during the session.
United States’ West Texas Intermediate (WTI) crude for October delivery rose $3.61, or 5.8 per cent to $65.75.
Both benchmarks marked their biggest week of losses in more than nine months last week, with Brent sliding about eight per cent and WTI about nine per cent.
But a drop in the U.S. dollar provided a boost, making crude less expensive for holders of other currencies.
“Although the oil complex has generally been able to shrug off strength in the stock market, the bullish combo of increased risk appetite and significant weakening in the U.S. dollar indices represents a potent mix that oil has been forced to recognize” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
The dollar index, which measures the currency against six peers, was down 0.4 percent after hitting its highest in more than nine months on Friday.
The MSCI’s world equity index, which tracks shares in 50 countries, was up, after having its biggest weekly fall since June last week.
Still, many nations are responding to the rising coronavirus infection rate by introducing new travel restrictions.
“We expect to see more adjustments this week, but the market sentiment will likely remain bearish, with growing concerns over slower fuel demand worldwide,”said Kazuhiko Saito, chief analyst at Fujitomi Securities.
